The Strategist

U.S. watchdog investigates Goldman Sachs cards business

08/08/2022 - 11:00

The credit card division of Goldman Sachs is under investigation by the U.S. Consumer Financial Protection Bureau.

The bank itself stated this in records submitted to the U.S. Securities and Exchange Commission.

The financial institution claimed that the regulator is looking at its "account management methods, especially with regard to chargebacks, crediting payments that are not in compliance, resolving invoicing errors, advertising and reporting to credit bureaus." According to the bank, it is cooperating with the watchdog.

In order to diversify its operations, Goldman Sachs entered the consumer banking industry several years ago, even though credit card issuance is not one of its core businesses.

The Apple Card, which Goldman Sachs and Apple Corp. created in 2019 together, is said to account for the majority of the bank's credit card issuance, according to CNBC. A second card is issued in cooperation with General Motors.